Growth and confidence in an uncertain world

Recent research from NI Chamber and others all sends a clear and consistent message to policymakers; business confidence across the region is declining.

So, what can and should be done? We are sharing this today to open the debate and socialise solutions from NI Chamber and our members.

?? An ambitious long-term economic plan for Northern Ireland

Last week NI Chamber had the privilege of engaging with Northern Ireland’s world- leading cyber security sector. The stories of ambition and growth were inspiring. One FDI company shared how they had planned to have up to 70 jobs when they first came to NI and now, several years on, they have over 500 people working in quality, well paid jobs. Another told of how they’d grown annual turnover through their Belfast office from ￡1M to ￡100M. The opportunities for continued growth against a backdrop of challenging economic forecasts was evident.

The UK Industrial Strategy is due imminently, with a strong focus on high-growth sectors, trade and investment, innovation and investment in infrastructure and skills.?

The questions for NI then are…

?How do we play to our strengths?

?What is it that sets us apart as region?

?How do we harness ambition and the opportunities for growth with our own globally competitive and sustainable proposition?

What if Northern Ireland had its own Executive-wide, long term economic plan, with ambitious targets for growth out to 2035, with a clear focus on building high-growth sectors?

And what if future policy decisions and investments were made in support of such a plan? A framework developed in partnership with industry would take time, but is this not pivotal to unlocking our potential and restoring confidence?

?? Radical action on people and skills

Access to the right people with the right skills is consistently at the top of the list of member challenges. ?

At NI Chamber’s Future Workforce Summit in 2024, we called for an independent Workforce Development Agency for Northern Ireland - creating a focal point for workforce development and aligning employers and educational institutions in delivering the critical skills necessary for a competitive and sustainable workforce. ?Northern Ireland should not be left behind following the establishment of Skills England by the new UK Government, as well as the success of Skillnet Ireland.

Our members also welcome the Department for the Economy’s ‘Good Jobs’ agenda, but want to see more emphasis on lifelong learning, careers advice and removing barriers like access to childcare.

??Simplifying trade

When it comes to barriers to trade, geo-political uncertainty and transport costs are significant. It is no surprise that many of our members are focused on access to near markets, namely GB, RoI and Europe. Our ideas for reducing red tape are set out at length in our manifesto document Mission: Business Growth.

How can we use the UK-EU reset to address common challenges in a changed world?

In particular reducing the customs and regulatory barriers, linking ETS schemes to reduce duplication in decarbonisation, agreeing an ambitious SPS deal to improve food security, and agreeing a framework to support cross-border data flows for R&D in tackling health and wellbeing challenges.

?? Addressing barriers to growth

Much of the action required demands that the Executive respond in spirit and letter to the recommendations of the NI Audit Office on key enablers like the delivery of major infrastructure projects, the planning system and funding of our water infrastructure.

??Addressing the cost of doing business

There is no question the UK Autumn Budget was a key driver in dipping confidence, but this is in addition to other existing costs like corporation tax, transport costs, labour and energy costs.

Regardless, it is critical that all aspects of the costs of doing business in NI are considered in future fiscal decision making in NI and the UK.

?? Mutual delivery on UKG-Executive commitments

Through various deals between the UK government and the Executive, numerous commitments have been made that could unlock growth and inject confidence.

The cornerstone of this is the development of an ambitious fiscal framework, which NI Chamber has publicly supported. But it also includes swift action of the corporation tax question, the delivery of an enhanced investment zone and meaningful public sector transformation. A sense of urgency on delivering on much of this might just help shift the dial.

These are just a few, non-exhaustive ideas. What do you think? How do we do what we can to restore business confidence?

Tell us what you think in the comments or message Suzanne Wylie or Stuart Anderson directly.

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